Posco’s Odisha project to suffer further delay in transfer of land

Posco India, which is facing inordinate delay in setting up its Rs 52,000 crore mega steel project near Paradip in Odisha, is set to face further delay in receiving the acquired land from the Odisha government as it is yet to pay Rs 54.22 crore towards the lease value of 2193.52 acres of land.

As a result the proposal for the transfer of the balance land of 1048.52 acre to Posco has lapsed.

The company, which has been claiming that it’s paying utmost importance to the project, is not depositing the amount despite several reminders from the Industrial Development Corporation of Odisha (IDCO), the land acquisition agency of the state government.

“Despite issue of several reminders till date Posco India has not deposited an amount of Rs 54,22,92, 318 for lease value of 2193.52 acres for which the sanction of balance of 1048.52 acres by collector is lapsed,” said a note sheet of Idco.

The matter will be placed in the review meeting of fast tracking of approval/clearances in respect of large projects by Project Monitoring Group, Cabinet Secretariat scheduled to be held on 8 August.

While the land acquisition agency has already acquired 2752.03 acres of land for Posco project, it has sanctioned lease for 2193.52 acres of forest land, which was de-reserved.

1301.58 acres of land have already been handed over to Posco India, said sources in the Idco.

The South Korean company has also not deposited Rs 18.79 crore towards differential net present value (NPV) of de-reserved forest land to be deposited with the forest department, the sources added.

“Due to non deposit of the amount, National Green Tribunal order is not being carried out by the Forest department for notification of de-reserved forest land,” said the note sheet.

While it failed to deposit the required amount, it even did not bother to fulfill the criteria given by the Environment Ministry during stage II clearance. While the company is supposed to take up afforestation measures around the boundary wall, it has not done so even after the advanced possession of land handed over by the Odisha government.